Debt revealed

Stewart Milne Group owed £189m when it failed

Stewart Milne
Stewart Milne collapsed last month

Stewart Milne Group left a £189 million pile of debts to suppliers, customers and other creditors when it collapsed last month.

Of the total, around £120m was to the two lenders Bank of Scotland and Homes England both of whom has first ranking security over the company’s assets. They will recover value from the sale of the assets in administration.

Ordinary unsecured creditors, including suppliers, customers, and contractors, are grappling with nearly £60m in outstanding payments, according to documents filed at Companies House.

The next biggest group was employees who were owed £9m had their contractual redundancy entitlements been paid. 

Administrators at Teneo Financial Advisory revealed that even after potential asset sales, there may not be sufficient funds to fully repay secured creditors, including the bank.

This leaves more than 1,375 ordinary creditors facing the prospect of receiving no compensation.

Founder and chairman Stewart Milne, who owned 77% of the group, transferred his shares to a Bank of Scotland subsidiary, HSDL Nominees, prior to Teneo’s appointment as administrators.

The collapse resulted in 217 immediate redundancies, with an additional 31 since 8 January, as the company ceased trading and wind-down efforts continued.

Efforts to sell the housebuilder failed, and continuing construction was deemed against the best interests of creditors.

The collapse has left ten projects unfinished. Draft accounts reveal pre-tax losses of £23.3m for the 12 months to 31 October 2023, compared to profits of £16.6m the previous year.

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